China News - 28 October 2021

International

COP26: developed nations should meet climate finance pledges, China says before Glasgow summit. Developed countries should offer more help to the developing world in coping with climate change, China said ahead of the COP26 summit, set to begin on Sunday. Meanwhile, the UN Environment Programme assessed all targets announced by countries by the end of last month and concluded that net zero pledges “could make a big difference”. SCMP, The Times, 27 October

China to build new military base in Tajikistan. According to new reports, Tajikistan has approved the construction of a new Chinese military base near the country’s border with Afghanistan, and “offered to transfer full control of a preexisting Chinese military base in the country to Beijing and waive any future rent in exchange for military aid from China.” SupChina, 28 October

China's Wang Yi meets with Serbian National Assembly President and reaffirms support for Taliban; Xi calls for closer all-round cooperation with Uzbekistan. CGTN, Reuters, SCMP, ChinaDaily, Xinhua, 27 October

US general says China’s hypersonic weapon test close to ‘Sputnik moment’. The US military’s top officer, General Mark Milley, confirmed that China recently tested an advanced hypersonic weapon, calling it a “very significant” development to which Washington was paying close attention. WSJ, Reuters, Bloomberg, FT, 27 October

Taiwan

Taiwan's President says the threat from China is increasing 'every day' and confirms presence of US military trainers on the island. In an exclusive interview with CNN, Tsai Ing-wen became the first Taiwanese President in decades to acknowledge the presence of US troops on the island for training purposes. CNN, The Telegraph, 28 October

US concerned by 'coercive' Chinese actions in Taiwan strait, Biden tells East Asian summit. Speaking at the virtual event attended by Chinese Premier Li Keqiang and other regional leaders, Biden reiterated that the United States had a "rock-solid" commitment to Taiwan. Reuters, NHK, Independent, 27 October

China says Taiwan has no right to join UN and suggests ‘game-changing’ consequences if the US continues its push. The Telegraph, Bloomberg, 27 October

Taiwanese minister’s covert trip to Brussels adds to EU-China tensions. Politico, 27 October

Xi-ASEAN summit boosts China’s plan to upgrade Southeast Asia ties to comprehensive strategic partnership. China’s long-held plan to upgrade ties with ASEAN could come to fruition during a special summit next month - Singapore and Malaysia have already signalled their readiness to elevate the bloc’s ties with China. SCMP, 27 October

Australia seeks ASEAN’s understanding on AUKUS as it looks to expand footprint in Southeast Asia. The Japan Times, Independent, 27 October

India says it is concerned about China's new border law. SCMP, Reuters, NHK, Independent, 27 October

Iran set to return to nuclear talks in November. Politico, The Guardian, 27 October

Economy & tech

China rations diesel amid fuel shortages. Petrol stations in many parts of China have begun rationing diesel amid rising costs and falling supplies, a move that is likely to exacerbate the global supply chain crisis and inflation. Meanwhile, China’s economic planning agency said on Thursday that it met energy companies about “setting standards” to combat “excessive profits”, raising expectations that the government could set new price caps on coal. BBC, FT, 28 October

British banks could be most vulnerable to economic meltdown in China, according to Bank for International Settlements data. UK lenders are the largest creditors to China, the Basle-based group found, with around £187billion of loans tied up in the country at the end of June – up by more than 20 per cent since the end of 2019. This Is Money, 27 October

Evergrande fallout: a third of China’s developers may face pressure with US$84 billion in debt maturing by end of 2022, S&P warns. As a third of China’s property developers face a “real” risk of default with debts set to mature by the end of next year, some have proposed extending their offshore bond maturities or undertaking a debt restructuring in a meeting with regulators. SCMP, Reuters, The Guardian, 27 October

China amends Anti-Monopoly Law for the first time, increasing penalties and regulatory control. SCMP, 27 October

Shanghai starts trial to clear hidden debt as China cuts risks. Bloomberg, 27 October

China focus

Hong Kong doubles down on Covid restrictions to fall into line with mainland China. Carrie Lam appears willing to sacrifice city’s reputation as an international business centre to please Beijing’s push for zero Covid. The Guardian, 28 October

Hong Kong passes new film censorship law to secure ‘national security’. BBC, The Japan Times, HKFP, Reuters, 27 October

China updates rules on real-name registration online in crackdown on schemes to revive banned user accounts. China’s internet watchdog is updating regulations on how users of domestic online platforms identify themselves, as Beijing intensifies efforts to clean up the nation’s cyberspace. SCMP, 27 October

Beijing sets out new rules for vanity-project super skyscrapers. BBC, RTHK, Reuters, 28 October

Opinions & editorial

The rise and fall of Jack Ma. Cindy Yu. The Spectator, 27 October

China’s ambitious climate goals collide with reality, hampering global efforts. Beijing commits to net-zero emissions before 2060, but for years to come it will continue burning a lot of coal to keep its economy charging ahead. Sha Hua and Phred Dvorak. WSJ, 27 October

Why China is the world’s last ‘Zero Covid’ holdout. The government has staked its political legitimacy on controlling the virus better than other countries, especially its geopolitical rivals. Vivian Wang. NYT, 28 October

A nuclear arms race is unavoidable without serious intervention. Laura Grego. FT, 27 October

China has started making the same mistakes as the Soviets. Hal Brands. Bloomberg, 27 October

Longer reads

How should Taiwan, Japan, and the United States cooperate better on defence of Taiwan? As tensions rise over the Taiwan Strait, the urgent sense of threat is increasing in Japan. So is the realisation that trilateral cooperation with the United States and Taiwan is needed. Yoichi Kato. Brookings, 27 October

Why China’s supply chains are breaking down. James Palmer. Foreign Policy, 27 October

How BRI debt puts China at risk. Jessica C. Liao. The Diplomat, 27 October

Chinese workers say they are lured abroad and exploited for Belt and Road jobs. WSJ, 27 October

Xi's new tax threatens China's invincible housing market. Katsuji Nakazawa. Nikkei Asia, 27 October